Corporate Governance 2.0

Corporate Governance 2.0

By Fouad Bendris

Although corporate governance is a hot topic in boardrooms today, it is a relatively new field of study. Its roots can be traced back to the seminal work of Adolf Berle and Gardiner Means in the 1930s, but the field as we now know it emerged only in the 1970s. Achieving best practices has been hindered by a patchwork system of regulation, a mix of public and private policy makers, and the lack of an accepted metric for determining what constitutes successful corporate governance. The result is a system that no one would have designed from scratch, with unintended consequences that occasionally subvert both common sense and public policy !

Fouad Bendris’s insight:
We need to return to first principles rather than meander toward best practices … Dispensing with earnings guidance would mitigate the obsession with short-term profitability !

Source:: Strategy & Governance

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